Suppose the Price Elasticity of Demand for Coffee at the Coffee

question 27

Multiple Choice

Suppose the price elasticity of demand for coffee at the Coffee Barn equals 1.71 for women and 0.55 for men.A successful price discrimination strategy would lead to _____ prices for men and _____ prices for women _____.

• A)lower;lower;in any circumstances
• B)lower;higher;in any circumstances
• C)lower;higher;as long as men can't resell drinks to women
• D)higher;lower;as long as women can't resell drinks to men

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Definitions:

Salient

Referring to something that is prominent, significant, or conspicuous in a particular context.

Extinction

In behavioral psychology, the gradual weakening and eventual disappearance of a conditioned response when the reinforcement is no longer offered.

Punishment

A consequence applied to decrease or eliminate an unwanted behavior, typically involving either physical or psychological discomfort.

Shaping

A behavioral conditioning technique that involves reinforcing successive approximations toward a desired behavior.